Senior Honors Projects, 2010-current

Date of Award

Spring 2014

Document Type

Thesis

Degree Name

Bachelor of Business Administration (BBA)

Department

Department of Finance and Business Law

Advisor(s)

Jaideep Chowdhury

Qingfeng Liu

Mark Graham

Abstract

Capital structure is one of the most important topics in Corporate Finance, and still attracting many famous scholars to explain factors that affect firms’ choice of capital structure. In this paper, we first discuss the importance of capital structure to a company itself, and to its investors. Secondly, I will introduce the concept of operating leases as an important component of debt. Then, we review the most famous capital structure theories to see what factors affects theoretically optimal capital structure and CFO decisions on capital structure. Finally, I point out some statistical issues in studying capital structure and suggest some remedies to these problems.

Share

COinS
 
 

To view the content in your browser, please download Adobe Reader or, alternately,
you may Download the file to your hard drive.

NOTE: The latest versions of Adobe Reader do not support viewing PDF files within Firefox on Mac OS and if you are using a modern (Intel) Mac, there is no official plugin for viewing PDF files within the browser window.